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en Although the deal is a psychological boost for Amazon, it does nothing to address the key strategic issues the company faces: namely, a lack of growth in its profitable boom, music and video segment, and a lack of profitability in its fast-growing consumer electronics business.
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en As we evaluate the current economic environment, the [factory] over-capacity situation, the growth of the consumer and electronics markets, and our best prospects for profitable growth, we believe it is in the best interest of all our shareholders to move toward the higher growth and higher margin entertainment electronics business.
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en We anticipate $601 million in total revenue and $385 million in U.S. book, music, video revenue from Amazon in the third quarter, ... Our $385 million books, music, video projection is flat with second-quarter results; however, if Amazon's sequential revenue growth in the sector actually comes in at 12 percent or higher, we believe the company could record as much as $650 million in total revenue.
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en Toys and video games were not as fortunate this year, with a lack of the must-have toy to drive sales. Moreover, the line between product categories are blurring with the introduction of more hybrid devices that can be considered consumer electronics or computer hardware.
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en In 2005, we also faced challenges in both our segments. Results in our Senior Segment were impacted by a higher-than-anticipated Medicare supplement loss ratio. Our Medical Segment was affected by increased severity of larger dollar claims. In 2006, we continue to actively address these issues as we remain focused on our ongoing business strategy of growth in our Senior Segment and stability in our Medical Segment.
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en Amazon at this level is a large retailer. So, 84 percent year-over-year growth is not bad in a very seasonally tough quarter, particularly given that Amazon's core categories are at their seasonally weakest in the June quarter. You did see that in their segment breakout. Books, music and video grew at 38 percent, but June is the toughest quarter.
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en Investors are being asked to own a stock on more and more faith. There is a lack of clarity about the company's growth rate and a lack of vision on where they are going.
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en [In addition to his responsibility for Wal-Mart Stores, U.S. A., Menzer will head the divisions responsible for real estate, logistics, information services, benefits, global procurement, financial services, store planning and strategic planning.] John will continue to accelerate changes in the largest segment of our business, ... During the last six years, he transformed Wal-Mart International into a wellorganized, fast-growing and profitable business. Prior to that, as Wal-Marts corporate chief financial officer, John established a solid track record as a business strategist who delivers results.
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en There is a lack of value creation, particularly around consumer electronics,
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en We're not dead yet, but we're tired. In the end if we hang in there, it's because of the way they go about their business. If we don't it's because we're not good enough, yet. But it won't be because of lack of effort or lack of preparation or lack of heart.
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en We expect our U.S. Books, Music and DVD/Video segment to be profitable on a pro forma operating basis for the full year 2000,
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en We expect our U.S. Books, Music and DVD/Video segment to be profitable on a pro forma operating basis for the full year 2000.
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en Marketers trying to grow their business over the next 10 years can either target the stagnant 18-49 segment, or they can develop strategies to appeal to the fast-growing 50-plus segment.
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en The acquired business has now been profitable for three consecutive quarters, in line with the Board's expectations, although regional performance has varied. Now we must meet even higher expectations. We believe our proven business model, an enhanced product portfolio, and a heightened focus on operational efficiency will enable us to optimize profitability across the globe. We are moving quickly to address these issues and to take advantage of the strong demand that exists for our products.
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en Staying ahead of this curve by offering the consumer truly differentiated products where we can maintain our standing as a premium brand is a fundamental strategic imperative. We need to focus selectively and aggressively on being the No. 1 consumer electronics and entertainment company on the planet.
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